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I think it only happens with the Bonjour sync, not the MobileMe (my guess for the most-used variety, based on no data whatsoever) sync. Agreed that it would be worrisome to encounter, and I don't understand what Apple wanted to accomplish here, but "everyone who syncs OF iPhone to anything else" is overstating things quite a bit.

Of course, who knows if anyone else is bothering to use encryption in their syncing methods? None of this trusted certificate stuff comes into play if not, right?